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Malleability of Alcohol Consumption: Evidence from Migrants

Author

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  • Marit Hinnosaar

    (University of Nottingham)

  • Elaine Liu

    (University of Houston)

Abstract

How malleable is alcohol consumption? Specifically, how much is alcohol consumption driven by the current environment versus individual characteristics? To answer this question, we analyze changes in alcohol purchases when consumers move from one state to another in the United States. We find that if a household moves to a state with a higher (lower) average alcohol purchases than the origin state, the household is likely to increase (decrease) its alcohol purchases right after the move. The current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margins.

Suggested Citation

  • Marit Hinnosaar & Elaine Liu, 2022. "Malleability of Alcohol Consumption: Evidence from Migrants," Working Papers 2022-020, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2022-020
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    1. Marit Hinnosaar, 2023. "The Persistence of Healthy Behaviors in Food Purchasing," Marketing Science, INFORMS, vol. 42(3), pages 521-537, May.

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    More about this item

    Keywords

    alcohol; geographic variation; migration; taxes; regulation;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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